Chancellor George Osbourne has announced his latest budget and it was full of both expected changes, as well as a few surprises. But how does it directly impact your business?
Well of course if you are a soft drinks company the new ‘sugar tax’ may already be making a significant impression on your business, but for most SMEs here is our summary of the key highlights you should be aware of:
- Business rates cut - From April 2017, small businesses that occupy property with a rateable value of £12,000 or less will pay no business rates – up from the current £6,000 or less. Some 600,000 businesses will now pay no rates – are you one of them?
- Tax allowances for the sharing economy - From next April, there will be two new tax-free £1,000 allowances – one for selling goods or providing services, and one for income from property you own, such as renting a driveway or loft storage.
- Stamp duty changes - Rates for commercial property have been changed with immediate effect, with the first £150,000 being charged at 0%, effectively being exempted from tax. Stamp duty will then be charged at 2% between £150,001 and £250,000, and 5% above £250,000.
- More Personal Allowances - The amount of income you can earn before you start paying income tax will increase from the current £10,600 to £11,000 in 2016 and £11,500 in April 2017. The higher rate threshold will increase from £42,385 to £43,000 in 2016 and £45,000 in April 2017. Whether you are a non-tax payer, a basic rate or a higher earner, more of your hard earned money will end up in your own back pocket.
- Class 2 National Insurance Contributions (NICs) scrapped – If you are self-employed you will currently be paying Class 2 NICs at £2.80 per week if you make a profit of £5,965 or over per year. From April 2018 these Class 2 NICs will no longer apply and only Class 4 NICs will be required. These Class 4 NICs will themselves be reformed to enable self-employed people to continue to build entitlement to the State Pension and other benefits.
Our accounting team can help with any aspect of tax and financials in your business, to ensure you are making the most of all the opportunities available, as well as confirming all your liabilities are covered.
From Bookkeeping to business rates, from Payroll to Personal Allowances and accounts to self-assessment they can relieve the burden and allow you to get back to what you do best – running your business.
Please get in touch on 01483 332220 or email us at firstname.lastname@example.org to find out more. We pride ourselves on being the staff you don’t see but the difference you do.